ECLIPSE FUNDS
Supplement Dated December 30, 1998
to Prospectus Dated May 1, 1998
Supplement provisions (A) and (B) apply exclusively to the Ultra Short Term
Income Fund and the Balanced Fund. Supplement provision (C) applies to all four
investment portfolios under the Eclipse Funds (the "Trust"). Supplement
provision (D) applies to only the Equity Fund and the Growth and Income Fund.
(A) The following two paragraphs are inserted (1) before the last paragraph
under "Table of Fees and Expenses" on page 4 and (2) after the first
paragraph in the second column on page 24:
Effective January 1, 1999, the Manager has voluntarily agreed to reduce its
fee payable under the 1994 Contract, as defined herein, with respect to the
Ultra Short Term Income Fund from an annual rate of 0.40% of the Fund's average
daily net assets to an annual rate of 0.20% of the Fund's average daily net
assets for a three year period ending December 31, 2001.
In addition, effective January 1, 1999, the management fee payable to the
Manager with respect to the Balanced Fund has been reduced from an annual rate
of 0.80% of the Fund's average daily net assets to an annual rate of 0.75% of
the Fund's average daily net assets pursuant to an October 20, 1998 amendment to
the 1987 Contract, as defined herein.
(B) The annual management fee rate of 0.80% pertaining to the Balanced Fund is
amended to 0.75% wherever listed in the fee schedules (1) under "The
Manager" on page 9 and (2) under "Investment Management Contracts" on page
24.
(C) Effective November 23, 1998, the mailing address of the Trust and Towneley
Capital Management, Inc., listed as 144 E. 30th Street, New York, New York,
10016, in the Prospectus, will change to:
470 Park Avenue South, 16th Floor
New York, New York 10016
(D) Effective January 1, 1999, the Eclipse Equity Fund will be renamed Eclipse
Small Cap Value Fund, and the Eclipse Growth and Income Fund will be
renamed Eclipse Mid Cap Value Fund.
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ECLIPSE FUNDS
Supplement Dated December 30, 1998
to Statement of Additional Information Dated May 1, 1998
Supplement provisions (A) and (B) apply exclusively to the Ultra Short
Term Income Fund and the Balanced Fund. Supplement provision (C) applies to all
four investment portfolios under the Eclipse Funds (the "Trust"). Supplement
provision (D) applies to only the Equity Fund and the Growth and Income Fund.
(A) The following two paragraphs are inserted after the fifth complete
paragraph under the management fee schedule on page 9:
Effective January 1, 1999, the Manager has voluntarily agreed to reduce its
fee payable under the 1994 Contract, as defined herein, with respect to the
Ultra Short Term Income Fund from an annual rate of 0.40% of the Fund's average
daily net assets to an annual rate of 0.20% of the Fund's average daily net
assets for a three year period ending December 31, 2001.
In addition, effective January 1, 1999, the management fee payable to the
Manager with respect to the Balanced Fund has been reduced from an annual rate
of 0.80% of the Fund's average daily net assets to an annual rate of 0.75% of
the Fund's average daily net assets pursuant to an October 20, 1998 amendment to
the 1987 Contract, as defined herein.
(B) The annual management fee rate of 0.80% pertaining to the Balanced Fund is
amended to 0.75% where listed in the fee schedule under "Manager" on page
8.
(C) Effective November 23, 1998, the mailing address of the Trust and Towneley
Capital Management, Inc., listed as 144 E. 30th Street, New York, New York,
10016, in the Statement of Additional Information, will change to:
470 Park Avenue South, 16th Floor
New York, New York 10016
(D) Effective January 1, 1999, the Eclipse Equity Fund will be renamed Eclipse
Small Cap Value Fund, and the Eclipse Growth and Income Fund will be
renamed Eclipse Mid Cap Value Fund.
